(FCRA) Fair Credit Reporting Act (Regulation V)

Question 1

Fair Credit Reporting Act (FCRA) (Reg V)

Answer 1

Deals with “credit reporting agencies”

• According to Regulation V - Consumers have the following (5) rights:

1. The right to an Adverse Action Notice (Denial Letter)
2. Free Copy of Consumer File/“Credit Report”
3. Request “Credit Score” (although score is not free)
4. The right to “Dispute” Incomplete or Inaccurate Information
5. The right to “Limit” Prescreened Offers

*Any entity that “uses a credit report” or another type of consumer report to “deny an application” for credit, insurance, or employment “must” provide the consumer with name, address and phone number of the agency that provided that information.

• Consumers are Entitled to “free copy” of credit file (report) under Regulation V (if):

1. Information resulted in adverse action (denial)
2. Victim of identity theft (with fraud alert)
3. Inaccurate information as a result of fraud
4. On Public assistance or unemployed

Question 2

Fair Credit Reporting Act Continued:

Answer 2

Credit Reporting Agencies “may not” report outdated negative credit information:

• Negative credit information more than “7 years”
• Bankruptcies more than “10 years”
• Unpaid federal tax liens - do not expire
• Criminal conviction - does not expire

**Must limit access to a. Credit file “ONLY” to those with “legitimate business need”